Forbes Energy Services Announces $30.0 Million Private Placement of Common Shares

    ALICE, Texas, Oct. 8 /CNW/ -- Forbes Energy Services Ltd. (TSX: FRB)
announced today that it has entered into share purchase agreements with two
accredited investors pursuant to which the Company has agreed to sell in a
private placement an aggregate of 7,966,500 common shares of the Company. The
common shares to be issued under the private placement have been conditionally
approved for listing on the Toronto Stock Exchange at an original issue price
of CDN$4.00 per share for an aggregate offering price of US$30.0 million. 
Forbes Energy intends to use the net proceeds of this offering to reduce
existing indebtedness and acquire equipment.  The parties intend to close as
soon as possible.
    The securities sold in this U.S. private placement have not been
registered under the Securities Act of 1933, as amended, or any state
securities laws and unless so registered may not be offered or sold except
pursuant to an exemption therefrom, or in a transaction not subject to, the
registration requirements of the Securities Act and applicable state
securities laws.  This press release is being issued pursuant to Rule 135c
under the Securities Act and does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
    Forbes Energy Services is an independent oilfield services contractor
that provides a broad range of drilling-related and production-related
services to oil and natural gas companies, primarily onshore in Texas.
    Forward Looking Statements
    This press release contains 'forward-looking statements,' as contemplated
by the Private Securities Litigation Reform Act of 1995, in which the Company
discusses factors it believes may affect its performance in the future. The
Company gives no assurance that the forward-looking statements will prove to
be correct and does not undertake any duty to update them. The Company's
actual future results might differ from the forward-looking statements made in
this press release for a variety of reasons, which include the Company's
ability to close the transactions discussed in this release and the receipt of
final approval by the Toronto Stock Exchange. Should one or more of the
foregoing risks or uncertainties materialize, or should the Company's
underlying assumptions prove incorrect, the Company's actual results may vary
materially from those anticipated in its forward-looking statements, and the
Company's business, financial condition and results of operations could be
materially and adversely affected.   Additional factors that you should
consider are set forth in detail in the Risk Factors section of the Company's
most recent quarterly report on Form 10-Q as well as other filings the Company
has made with the Securities and Exchange Commission, and on the 'Corporate'
page of Forbes Energy's website,

     Contacts:  Forbes Energy Services Ltd.
                L. Melvin Cooper, SVP & CFO

                Ken Dennard, Managing Partner
                Ben Burnham, AVP


For further information:

For further information: L. Melvin Cooper, SVP & CFO of Forbes Energy
Services Ltd., +1-361-664-0549; or Ken Dennard, Managing Partner, or Ben
Burnham, AVP, both of DRG&E, +1-713-529-6600, for Forbes Energy Services Ltd.
Web Site:

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